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HOW DOES ONLINE PAYMENT SYSTEM WORK?
There are various companies that provide
online payment gateways. These companies
are also termed as Payment Service
Providers (PSPs). Let us see the actual
working of the online payment system in
this article. Firstly, in any type of
business, there should be a buyer at one
end and a seller on the other end. On
signing the mutual agreement, both the
parties agree for a transaction or
business. Today, the introduction of the
internet banking systems as well as
marketing system has created an impact
to the overall business network and
market solutions. In the recent time,
more and more people are attracted
towards the online marketing to make
various purchases. A strong team of
technical backup is maintained at the
background at all times. These technical
experts are available 24 hours a day x 7
days, to help the credit card user and
also the internet banking users.
Since all the purchases are made online,
the payments can also be easily made via
online. There are various sites of the
e-commerce business. These businesses
offer a lot of options to the existing
customers. They include the shopping
cart facilities so as to promote sales.
The online merchants only asks for the
credit card number and other related
information like the 4-digit security
PIN code, type of card, etc. The
customer has to give the correct details
in order to proceed with the purchase
which is done through online. Once the
correct information is provided, the
credit card is processed online through
the online payment gateways instantly
using a separate server. The modern
technologies have introduced new
electronic devices to control fraud and
scam. If a merchant account holder is
aware of faulty cases, then an
intelligent merchant will prevent his
business from being dissolved.
The customer has to select the products
he/she wishes to purchase from the
websites of the company. The PSPs have
designed the system so well that the
request is immediately processed. It is
first requested to the PSP to process
the approached transaction. The PSPs
process the transaction request using a
separate and safe server. This is a good
process to protect the transaction being
distorted and also the details are kept
as secret. The transaction details
contain the card number, expiry date,
card type, amount and currency.
Certain parameters are used by the
payment processing systems to process a
transaction. Here, 128 bit encryption is
used to read the basic parameter and
also to check whether the information
provided is correct or not. The customer
is supposed to fill up all the necessary
details that are available on the
websites. This is done for the safety
reason for both the customer and the
merchant account holders. Once the
server checks the given information, and
if it is found correct, then a message
is sent back to the website regarding
the transaction processing. The system
will provide the feed back upon the
information that is provided. The feed
back may include the customer’s name,
address, contact details, and also other
added information. |
